p17n63qg7jmbh1r4fin71pds1p454.pdf

Notes to the Consolidated Financial Statements
Exchange rate risk
FOR THE YEAR ENDED 31 DECEMBER, 2012
Expressed in Trinidad and Tobago dollars
Collective Investment Schemes - Registered as local unit trust schemes
The value of the net assets of the portfolios may fluctuate with changes in foreign exchange rates. This risk is currently limited to
the Growth & Income Fund, the TT$ Income Fund and the Universal Retirement Fund as these TT dollar-denominated Funds may
hold financial assets denominated in other currencies. As a consequence, the value of the net assets and/or earnings of the TT$
denominated portfolios could increase or decrease in value due to exchange rate fluctuations of individual currencies relative to
the TT dollar. This risk is managed by restricting non-TT dollar holdings in the individual Funds to an appropriate proportion of
net assets. The primary foreign exchange exposure in the Investment Funds is to the US$/TT$ exchange rate given the negligible
holdings of other currencies in the portfolios.
The portfolios’ foreign currency assets as at 31 December, 2012 and 31 December, 2011 were as follows:
At 31 December, 2012 At 31 December, 2011
US$ OTHER US$ OTHER
(Presented in TT$) (Presented in TT$) (Presented in TT$) (Presented in TT$)
$’000
$’000
$’000
$’000
Growth & Income Fund
Equities 953,078 14,668 768,187 20,814
Debt instruments - traded 27,519 - 8,614 -
Debt instruments – non-traded 81,394 - 66,334 -
Cash & other net assets 322,980 - 269,699 -
TT$ Income Fund
1,384,971 14,688 1,112,834 20,814
Debt instruments - traded 230,682 - 273,292 -
Debt instruments – non-traded 451,952 - 399,987 -
Cash & other net assets 609,230 - 82,039 -
Universal Retirement Fund
1,291,864 - 755,318 -
Equities 60,556 - 36,679 -
Debt instruments - traded - - - -
Debt instruments – non-traded - - 5,467 -
Cash & other net assets 18,199 - 10,716 -
78,755 - 52,862 -
A 1% change in the TT dollar relative to the US dollar would have changed the net assets of the individual Funds as at 31 December,
2012 and 31 December, 2011 as follows:
2012 2011
$’000 $’000
Growth & Income Fund 13,850 11,128
TT$ Income Fund 12,919 7,579
Universal Retirement Fund 788 528
Collective Investment Schemes – Registered as overseas subsidiary companies
The reporting currency of the overseas subsidiaries is the US dollar. Moreover, the portfolio assets of the Funds issued by these
subsidiaries are denominated exclusively in US dollars. As a result, there is no material exchange rate risk in those Funds. Moreover,
the translation effect of the subsidiaries on the Group’s Consolidated Financial Statements is considered minimal.
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Unit Trust Corporation Annual Report 2012
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